Thanks to help from Edgar De Cleene it was determined that re-encoding the original MPEG file using ffmpegx allowed it to be played properly in Squeak.  The format after clean up was still MPEG-1 muxed but whatever ffmpegx did to it made it playable, both video and audio.

Edgar also points out that to run videos in 3.10 you should first load MoviesFor3dot10 (not so for 3.8 and 3.9).

John